(1) This article applies to an EEA firm which immediately before commencement was -

(a) a European institution within the meaning of the 2BCD Regulations; or

(b) a European investment firm within the meaning of the ISD Regulations.

(2) Subject to paragraph (3) -

(a) if the requirements of paragraph 1 of Schedule 2 to the 2BCD Regulations or paragraph 1 of Schedule 3 to the ISD Regulations (whichever is applicable) have been complied with in relation to the firm's establishment of a branch, then the firm is to be treated as satisfying the establishment conditions in paragraph 13 of Schedule 3;

(b) if those requirements have been complied with in relation to the firm's provision of a service, then the firm is to be treated as satisfying the service conditions in paragraph 14 of Schedule 3,

and, accordingly, is to be treated as qualifying for authorisation under Schedule 3 as aresult of paragraph 12 of that Schedule (and as being an "incoming firm" for the purposes of Part XIII of the Act).